The initiative will promote the use of cleaner fuels and more fuel-efficient vehicles, reduce vehicle emissions, and address the energy demands posed by a growing vehicle fleet.

The Government of Saint Lucia, through the Cabinet of Ministers has approved new sustainable-energy-related concessions for the transport sector—the largest consumer of imported fossil fuels.

The initiative is consistent with Saint Lucia’s national agenda to reduce the importation of fossil fuels and promote renewable energy and energy diversification. The measures will also result in significant savings.

As a result, government has revised the import duties and excise tax rates on electric and hybrid vehicles, through Cabinet Conclusion no. 282 of 2014. The duties for electric and hybrid vehicles now range from five percent import duty and zero percent excise tax plus $1000, to 10 percent import duty and 10 percent excise tax plus $6000, depending on the vehicle’s age and engine capacity (for hybrid vehicles). This concession is valid for a period of 30 months, effective June 1, 2014 to November 30, 2016. Value Added Tax (VAT) still applies to all vehicles.

Consumers currently enjoy a Duty and Excise Tax exemption on the importation of all vehicles and vehicle conversion equipment that allow operation on sustainable fuels.

To further increase the benefits to the country, the Government of Saint Lucia, through the Ministry of Sustainable Development, Energy, Science and Technology will soon sign a Memorandum of Understanding (MOU) with the United Nations Environment Program (UNEP), to promote cleaner fuels and more fuel efficient vehicles in the country. This collaboration will offer critical support to Saint Lucia in reducing vehicle emissions, and will address the energy demands posed by a growing vehicle fleet.